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Correlation in Quantitative Analysis Does Not Imply Causation

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Correlation in quantitative analysis does not imply causation

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Definitions:

Sector Rotation

An investment strategy involving the movement of funds from one industry sector to another to take advantage of economic cycles.

Investment Strategy

A plan or set of rules designed to guide an investor's selection of an investment portfolio, often based on individual goals and risk tolerance.

Macroeconomic Forecasts

Predictions about the future state of an economy’s overall performance, including variables such as GDP growth, inflation, and unemployment rates.

Penetration Rate

The percentage of a target market that consumes a product or service, indicating the level of acceptance and market saturation.

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